Lightyear Capital and Stone Point Capital-backed bank holding company Piedmont Community Bank Holdings has invested $12 million into VantageSouth. The deal is structured with Piedmont acquiring 1.8 million shares of the North Carolina bank's preferred stock, which is convertible into a majority stake of the firm. The investment will more than double the bank's capital base.
In total, there have been 72 banks that have received investment from PE firms since the beginning of 2006, according to the PitchBook Platform. Investments in the sector dipped in 2009, with 14 completed investments totaling just under $1 billion. Comparatively, in 2008 there were 21 deals with $17.5 billion in invested capital and in 2007 there were 32 deals with $3.6 billion in invested capital. With four bank investments in 2010 already, the year is shaping up better than 2009. But with continued regulation uncertainty and turbulence in the financial markets, investments targeted at banks will likely remain slow in the near future.